Banks fall again as bailouts fail to restore calm
Bank shares tumbled on both sides of the Atlantic as efforts to shore up the financial system failed to calm investor nerves.
After a brutal week on markets around the world, troubled lenders in the US and Europe were on the slide once again – despite the bailouts of Zurich-based Credit Suisse and San Francisco-based First Republic.
That rescue package itself came just hours after the £45billion bailout of Credit Suisse.
But it did little to calm the markets left reeling by the collapse of three US regional banks in quick succession – Silvergate on March 8, Silicon Valley Bank (SVB) on March 10 and Signature Bank two days after that.
With investors fearing worse is still to come, First Republic crashed another 32.8 per cent in early trading. Other regional lenders to feel the heat included Pacific West which fell 7.2 per cent, Western Alliance which lost 15.1 per cent, Zions Bancorporation which dropped 3.9 per cent and Comerica which dipped 5.2 per cent. In Europe, Credit Suisse plunged 10.9 per cent.
The fallout was felt on stock markets around the world with the FTSE 100 giving up early gains to close down 1 per cent, or 74.63 points, to 7335.4.
Neil Wilson, a strategist at Markets.com, warned of ‘fear and loathing in banking and markets’, adding: ‘We are not out of the woods.’
It sets the scene for a rocky weekend for industry chiefs, regulators, central bankers and government ministers and officials before the markets reopen on Monday morning.
Source of data and images: dailymail